The Toronto Real Estate Board reported 8,082 home sales through TREB’s MLS® System in June 2018 – up 2.4% over the June 2017 result.
The average selling price in June edged up by 2% on a year-over-year basis to $807,871. While this is an interesting statistic, it does not reflect the reality of the market. The average price reflects the price of homes that have been selling. Because of the tightening of the mortgage rules those homes have generally been under $1,000,000 with 35% of them being condominiums, either apartments or townhouses, selling at an average price of about $575,000. These less expensive homes impact the “average selling price”.
The other misleading statistics are that the average sales price which was 99% of the asking price with the house selling in 21 days. These statistics are misleading because it has become the custom in the industry to cancel a listing that is not selling and to relist it at a new price. So in reality a property may have had their price adjusted several times before it finally sold and the averages are from the final listing and not from when the house was first placed for sale.
One fact that is undeniable is that if a property is on the market and hasn’t sold in 3 weeks, it is at least 5% over market value. Today with the Internet, everyone is aware of what a home should sell for. Even if an agent was able to sell a home over market value the home is generally appraised for mortgages and the mortgage would be declined because the house sold at too high a price for the neighborhood. So the question arises, then why do we need a real estate agent? A good agent markets the property to find the buyer who would pay top value for the property. The agents who have and who attract the most buyers to the property have the best chance of getting the best price terms and conditions for their sellers. Today more than ever you need a strong agent with a well-known company to represent your interests.
We have moved into a more steady traditional real estate marketplace, taking an average home 30 to 60 days to sell. It takes that long because we have to find the one buyer would pay the seller the maximum value for the home. The last few years many real estate agents were order takers, today, being in a more traditional sales cycle market, realtors have to be salespeople, finding the buyers and showing them the benefits of the home, the area and the benefits of living in a particular neighborhood.
The real estate market may seem complicated at the present time but it really isn’t. If you or friend are thinking of buying or selling please give me a call. Let me answer all your questions and help you make a decision that is right for you and your family.
Have a great month,
Your Friend In Real Estate.
PS. I am never too busy for your referrals!
Why Choose Peter Kwan of RE/MAX Realtron When Selling Your Home?
Real Estate Professional Peter Kwan has been serving home Sellers and Buyers in Toronto since 1991. He is a consistent Top Producer and has earned many awards throughout his career, including #1 Chinese agent in Canada.
Backed by the power of the RE/MAX network, Peter uses a combination of traditional and high tech tools to market properties to the greatest number of potential buyers worldwide. His website features community and Real Estate information, as well as Listings.
Peter is fluent in English, Cantonese and Mandarin. His aggressive and unique marketing plan gives all his clients' homes extraordinary exposure. SOLD FAST, and gets TOP DOLLAR! His success has been due to personal approach and integrity * dedicated service to his clients and the industry.
Peter is tireless in his efforts to serve his clients. He understands the needs of a family. By exceeding the expectations of his clients, Peter has earned their referrals and repeat business. He has the skills, knowledge and experience to achieve your Real Estate Goals.
Why Peter Kwan? Because…He specialize in you!
Peter Sold 1 Home Ever 2-3 Days since 2006.
Most of Peter's listings sold record breaking over asking price were without ineffective open houses, staging & even no For Sale sign on the property. Peter is very happy and appreciated if the owner allow him to install an overasking sign after Sold.
Peter is so confident that if owner found any real estate agent sold more properties in Ontario than Peter Kwan within the past 26 years, Peter is willing to match their commission plus a free air ride with Peter Kwan (Pilot in Command) on his private airplane.
No Free Lunch! Peter invests close to $1 Million every year just to Advertise!